EY ACEThe tax angle to data management

EY ACE - The tax angle to data management EY ACE - The tax angle to data management

Traditionally, each step in the record-to-report process is handled separately by different teams. They use different technologies and focus on one specific deliverable: the finance team prepares the consolidated group financial statement, the tax team provides the consolidated tax position, the country controller is responsible for the statutory financial statements, the tax service provider prepares the corporate income tax return and the country-by-country report is prepared by the finance team in cooperation with the tax team. This silo approach results in duplication of work, limited re-use of data and it lacks a transparent audit trail from source data to deliverable.

In addition, the changing landscape of the tax function requires you to evaluate whether the current approach to the record-to-report process is able to meet future requirements.

Whether you are a tax director, CFO or group controller, we all know about the efforts needed to collect, process and manage financial data in order to deliver transparent, relevant, accurate and timely reports. Let us help you on your journey from fragmentation to integration with the EY ACE methodology.

EY ACE – efficiency through data centric technology The EY ACE methodology is a revolutionary approach to the record- to-report process with major benefits. The EY ACE methodology focuses on the data used in the record-to-report process: every step in the record-to-report process uses the same source data from the financial system. By leveraging technology and using the accounting approach the EY ACE methodology creates an efficient integrated process with a transparent audit trail from the source data to the various deliverables, providing standard reports, enabling automation and providing a platform for data analysis and data mining – for all entities worldwide.

Summarizing, the EY ACE methodology supports you with data management and provides management information to support strategic, financial and operational decisions; thus optimizing your business.

International trends are rapidly changing the landscape of the tax function and also impacting the finance function.

• Digital tax administration – Today, tax authorities increase the use of data analytics and data mining to more efficient and effective audit filed tax returns. As they progress in their digital maturity, the digital tax administration will request more data from taxpayers, upscaling this to full (near) real-time transactional details in the future.

• Do more with less - The tax function is required to provide more support to the business with less resources.

• Fast close – Multinational companies are pushing to shorten their quarter- and year-end close processes. This increases the pressure on the tax function in the already time-constraint tax provision process.

• Transparency - Regulation requires multinational groups to provide tax authorities a country-by-country report containing key information regarding the tax position of all entities which are part of the group. Draft EU regulation requires disclosure of the country-by-country information in the financial statements.

Timely, efficient, transparent, high quality and compliant Benefits of EY ACE

• Single version of the truth. A complete and transparent audit trail provides insight in who did what, why and when at all times for all deliverables.

• Built-in tax intelligence to support compliance with regulatory requirements.

• Generate and use reports with real-time drill-down functionality.• Efficiency gains due to the optimized and automated process

of data collection and processing while improving the quality of the deliverables.

• Cost reduction

The record-to-report process related to direct tax

• Preparation of the consolidated group financial statements including the consolidated current and deferred tax position;

• Preparation of the statutory financial statements including the statutory current and deferred tax position;

• Preparation of the corporate income tax return;• Return-to-provision true up adjustment calculation to align

the consolidated current and deferred tax position to the tax position based on the filed corporate income tax return;

• Preparation of the country-by-country report for certain multinational groups.

Implementation EY ACE covers the complete record-to-report-process (consolidated group financial statement, statutory financial statements, corporate income tax compliance and country-by-country reporting), and has three implementation possibilities. Whichever option you choose, it is key that the record-to-report-process is structured according to the ACE methodology.

• EY ACE as a Service (SaaS). We provide client access to the EY Microsoft AZURE environment offering you full advantage and functionality of EY ACE.

• EY ACE as your Global Compliance and Reporting platform in which we jointly manage the global compliance of your company.

• EY ACE embedded in the financial systems of your company. A centralized finance function and use of a single ERP platform enables you to include thr ACE methodology at transactional level.

Everyone is talking about digitization and automation of the tax and finance function. However, this can only be achieved when the underlying processes and data are standardized. EY ACE delivers both.

EY ACE - The tax angle to data management

ACE Data management approach – top down

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This material has been prepared for general informational purposes only and is not intended to be relied upon as accounting, tax or other professional advice. Please refer to your advisors for specific advice.

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ContactCurious to see how EY ACE can work for you? Request a free demonstration to experience the EY ACE methodology or contact the EY ACE team

Erwin de VriesSenior Tax Managere-mail: Erwin.de.Vries@nl.ey.commobile: +31 6 29084291

Frans KockxSenior Tax Managere-mail: Frans.Kockx@nl.ey.commobile: +31 6 21251243

Martin de SchiffartSenior Managere-mail: Martin.de.Schiffart@nl.ey.commobile: +31 6 55442534

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